With a residential leasehold premises in Blackley, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are less than 80 years remaining. Leasehold owners in Blackley with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When a lease has less than eighty years remaining, under the current Act the landlord is entitled to calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Blackley with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Santander | |
| Yorkshire Building Society |
Using our service gives you increased control over the value of your Blackley leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jacob owned a conversion apartment in Blackley on the market with a lease of a few days over 72 years outstanding. Jacob on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Jacob to invoke his statutory right. Jacob procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2009 we were phoned by Dr O Stewart who, having moved into a basement apartment in Blackley in June 2009. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Similar flats in Blackley with an extended lease were worth £210,600. The average ground rent payable was £45 invoiced annually. The lease came to a finish on 14 March 2088. Given that there were 62 years unexpired we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 plus costs.
Last Winter we were e-mailed by Mrs Hollie Alexander , who bought a one bedroom flat in Blackley in August 2000. The dilemma was if we could approximate the premium could be to extend the lease by a further 90 years. Comparative residencies in Blackley with a long lease were worth £265,000. The mid-range amount of ground rent was £50 invoiced annually. The lease ended in 2099. Taking into account 73 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.